Energy Efficiency and GHG Mitigation

Approach

Our approach to energy efficiency and GHG mitigation is centered on the following approach.

A robust mechanism of measuring and reporting performance metrics is a primary requirement to set scientifically valid, traceable and accountable goals. We have standardized the process for accounting of Scope 1 and 2 emissions and have also completed the valuation of externalities (all Scope 3 heads).

In our framework of goals which ended in 2015, we aimed to reduce our Scope 1 and Scope 2 people emissions intensity figures by half from the 2010 baseline. This financial year, we undertook a target setting exercise to propose targets running from the current year to 2019-20. Over the last couple of years, different frameworks have evolved for setting GERTs (GHG Emissions Reduction Target). Once such framework is the science based target setting from WRI (World Resource Institute) that tries to align itself with the 2 degree imperative i.e. global emissions by 2050 to be 20% of 1990 levels so as to stay within the threshold of 2 degree rise in average surface temperature.

While we have studied and incorporated the WRI framework to the extent that is relevant, our methodology has also been driven by empirical considerations that are more pertinent to the IT industry sector and to India. We propose our next phase of targets running from the current year to 2019-20; we have suggested targets for 2025 and 2030 also but these will be subject to revision when the next five year target setting exercise is done in 2020.

Our goals comprise five sub-targets, two on GHG and three on energy:

For Energy Efficiency, in line with industry standards, we are shifting from 'Per Employee' based metrics to Floor Area (FAR) based metrics. The accepted standard is EPI or Energy Performance Indicator which is equivalent to Energy Per Unit of Floor Area for a defined number of working hours per day.

We have deliberately not set a Carbon Neutral goal or an offset program for reducing Scope 1 and 2 emissions due to the externalities involved in most alternatives like embedded carbon and water footprint, land use change and broader ecological and social sustainability issues involved in such programs. For example, mass afforestation of a single species over a large area may help achieve a carbon reduction goal but have a high negative impact on water sustainability, biodiversity and livelihoods.